In calmer, more predictable times some people find it difficult not to panic based on headlines. During a pandemic, the temptation to panic and make impulsive money moves may be even greater. Kiplinger.com offers advice to nervous investors in “How to Save Yourself from…Yourself.”
The article says “It is only a loss if you sell it. Markets go up and they go down, but over the long run, they have always gone up.” So, before you panic and decide to sell investments that could still grow over time, consider the long-term consequences to your portfolio.
And instead of selling, you could also consider buying some of the stocks that are going to be on sale during uncertain times. Rather than worrying about what could happen to stocks you have you could boost your portfolio with additional investments. One thing the article suggests for those who want to invest more but are risk-averse is annuities since they are less volatile.
On the other hand, some people are not panicking at all because they have no investments, although now may be a good time to start investing. The Motley Fool offers tips in “How to Start Investing During a Pandemic.” Two pieces of advice offered are overall financial planning strategies and not strictly tied to investing: have an emergency and reduce your debt as much as possible. According to The Motley Fool, these actions mean you are ready to invest.
If you haven’t invested before you can take your time to learn more about the stock market and consult with a Fee-Only financial planner. The article suggests that if you aren’t ready to just dive in, you can invest a little money at a time to test the waters.
Like Kiplinger.com, The Motley Fool suggests that you need to give investments time to grow:
“Finally, remember that pandemic or no pandemic, you should never invest in the stock market with any money you will or may need within five (if not 10) years. You don’t want to have to sell stocks after they’ve crashed, and the market’s performance in the short term is unpredictable — but over the long run, it has always gone up.”